Hut 8 Corp (NASDAQ:HUT) is one of the best cryptocurrency and blockchain stocks to buy now. On December 19, Benchmark raised the stock’s price target to $85 from $78. The price target hike is in response to the company signing a $7 billion data center deal, which is expected to strengthen its digital infrastructure business in addition to its crypto-focused business.
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The company has signed a 15-year, $7 billion lease agreement with Fluidstack for 245 megawatts of IT capacity at its River Bend data center. Google is to provide the financial backstop covering obligations during the 15-year lease term. In addition to the growing digital infrastructure business, the analyst also views the company’s stake in Bitcoin mining company American Bitcoin as a positive going forward.
“The transaction combined superior deal economics relative to peer deals, long-dated, investment-grade-backstopped cash flows, and multiple layers of embedded expansion optionality across three counterparties – Anthropic, Fluidstack, and Google,” Palmer noted.
Likewise, research firm Keefe, Bruyette & Woods has increased Hut 8’s price target to $55 from $30 while reiterating a Buy rating. The price target hike is in response to what the research firm bills as strong execution on the high-performance computing colocation deal. The research firm expects the company to secure additional Google TPUs owing to the net expansion potential at River Bend.
Hut 8 Corp. (NASDAQ:HUT) operates an energy-first infrastructure platform, building and managing large-scale data centers for power-hungry applications such as AI and Bitcoin mining, offering services ranging from power generation and digital infrastructure to compute power (GPU/CPU) and managed data center services.
While we acknowledge the potential of HUT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.